Peapack-Gladstone Financial Corporation reported substantial financial growth for the fourth quarter of 2025, with net income reaching $12.2 million and diluted earnings per share of $0.69, representing a 26% increase from the previous quarter. The company's full-year performance showed net income growth of 13% to $37.3 million, or $2.10 per share, compared to $33.0 million, or $1.85 per share, for the twelve months ended December 31, 2024.
The company's deposit transformation strategy proved particularly effective, with total deposits growing by a net amount of $460 million, or 8%, over the last twelve months to $6.6 billion at December 31, 2025. Core relationship deposits increased $828 million for the year as the company replaced higher-cost deposit balances with new relationships at lower funding costs. Noninterest-bearing deposit growth was especially strong, increasing by $316 million, or 28%, during 2025. Total loans grew by $738 million, or 13%, to $6.3 billion during the same period, with loans originated at a weighted average coupon of 6.60% during the year.
Net interest income showed significant improvement, increasing $6.0 million, or 12%, on a linked quarter basis to $56.5 million for the fourth quarter of 2025 compared to $50.6 million for the third quarter of 2025. The net interest margin expanded to 3.08% for the quarter ended December 31, 2025, compared to 2.81% for the previous quarter and 2.46% for the same period in 2024. This improvement was driven by better cost management on average interest-bearing liabilities and continued margin expansion.
President and CEO Douglas L. Kennedy emphasized the company's strategic achievements, stating that their fourth quarter results demonstrate the ability to digest significant investments while delivering earnings growth, improved operating leverage, and meaningful shareholder value. He noted that strong core deposit growth, disciplined pricing, and consistent execution have driven eight consecutive quarters of net interest income growth and continued expansion in the net interest margin. The company's wealth management division showed particular strength, with assets under management and administration growing by $1.2 billion to $13.1 billion at December 31, 2025, compared to $11.9 billion at December 31, 2024. New business inflows totaled $291 million in the fourth quarter and $1.0 billion for the full year 2025.
Commercial banking operations contributed significantly to the company's growth, with commercial and industrial lending accounting for 55% of new business originations during the fourth quarter. C&I balances represented 44% of the total loan portfolio at December 31, 2025. The company's capital position remained strong, with tangible book value per share increasing 10% to $34.99 per share at December 31, 2025, compared to $31.89 at December 31, 2024. Regulatory capital ratios remained significantly above well capitalized standards, with the Tier 1 Leverage Ratio at 9.89% for Peapack Private Bank & Trust and 8.87% for the company.
Asset quality showed improvement during the quarter, with nonperforming assets decreasing to $68.2 million, or 0.91% of total assets, at December 31, 2025, compared to $84.1 million, or 1.13% of total assets, at September 30, 2025. The company maintained a strong liquidity position, with balance sheet liquidity totaling $990 million, or 13% of total assets, and additional liquidity resources of approximately $3.6 billion through secured available borrowing facilities. The company's expansion into New York City and Long Island contributed to higher operating expenses, which totaled $53.5 million for the fourth quarter of 2025, but management noted that the pace of operating expense growth is moderating as these initiatives mature.
The company's detailed financial results are available in their Q4 2025 Investor Update, accessible on their website at https://www.peapackprivate.com and via a Current Report on Form 8-K on the Securities and Exchange Commission website at https://www.sec.gov. These results demonstrate the company's successful execution of its private banking model and strategic expansion efforts in competitive metropolitan markets.
